exv99w2

Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
February 6, 2008

AVALONBAY COMMUNITIES, INC. ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2007 OPERATING RESULTS
AND PROVIDES 2008 FINANCIAL OUTLOOK

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended December 31, 2007 was $129,644,000. This resulted in Earnings per Share — diluted (“EPS”) of $1.65 for the quarter ended December 31, 2007, compared to $0.58 for the comparable period of 2006, a per share increase of 184.5%. For the year ended December 31, 2007, EPS was $4.38 compared to $3.42 for the comparable period of 2006, a per share increase of 28.1%. These increases are primarily attributable to an increase in gains from the sale of communities and joint venture real estate investments in 2007 as compared to 2006 and growth in income from existing and newly developed communities in 2007. Results discussed in this release for both 2007 and 2006 include non-cash charges associated with our change in the accounting for certain land leases.

Funds from Operations attributable to common stockholders — diluted (“FFO”) for the quarter ended December 31, 2007 was $89,597,000, or $1.14 per share, compared to $79,894,000, or $1.05 per share for the comparable period of 2006. FFO per share increased 8.6%, due primarily to contributions from improved community operating results and newly developed communities, partially offset by an increase in the expense for abandoned pursuits discussed below.

FFO per share for the year ended December 31, 2007 increased by 8.7% to $4.61 from $4.24 for the comparable period of 2006. FFO per share for the year ended December 31, 2007 and 2006, includes $0.01 and $0.18 per share, respectively, related to the sale of land parcels. Adjusting for these land sales in both years, FFO per share increased 13.4%, driven primarily by improved community operating results and contributions from newly developed communities.

FFO per share includes an increase in the expense for abandoned pursuits of approximately $3,881,000, or $0.05 per share for the quarter ended December 31, 2007 and $4,859,000, or $0.06 per share for the full year 2007 as compared to prior year periods.

Commenting on the Company’s results, Bryce Blair, Chairman and CEO, said, “Our fourth quarter results capped a year of solid financial and operational performance for the Company. FFO growth of 13.4% was the third straight year of growth above 10%. Heading into 2008, we anticipate a weaker economic environment but expect that a falling homeownership rate, favorable demographics and constrained supply will continue to drive positive renter demand in our markets. In anticipation of continued growth next year, we announced last evening that our Board raised our quarterly dividend by 5% for the first quarter. The Board also authorized a $200 million increase to our common stock repurchase program.”

Operating Results for the Quarter Ended December 31, 2007 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $19,156,000, or 9.9% to $212,956,000. For Established Communities, rental revenue increased 4.4%, comprised of an increase in Average Rental Rates of 4.5% and a decrease in Economic Occupancy of 0.1%. As a result, total revenue for Established Communities increased $6,733,000 to $165,699,000. Operating expenses for Established Communities increased $1,464,000, or 2.8% to $53,006,000. Accordingly, Net Operating Income (“NOI”) for Established Communities increased by $5,269,000, or 4.9%, to $112,693,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the fourth quarter of 2006 to the fourth quarter of 2007:


4Q 07 Compared to 4Q 06

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		2.7	%		3.7	%		1.7	%		43.2	%
Mid-Atlantic		3.2	%		4.8	%		2.4	%		15.8	%
Midwest		3.0	%		7.7	%		0.1	%		2.0	%
Pacific NW		9.5	%		0.5	%		14.0	%		4.6	%
No. California		7.6	%		(1.2	%)		11.2	%		22.6	%
So. California		3.3	%		4.9	%		2.7	%		11.8	%

Total		4.4	%		2.8	%		4.9	%		100.0	%


(1)		Total represents each region’s % of total NOI from the Company, including discontinued operations.

Operating Results for the Year Ended December 31, 2007 Compared to the Prior Year

For the Company, including discontinued operations, total revenue increased by $84,565,000, or 11.4% to $823,652,000. For Established Communities, rental revenue increased 5.5%, comprised of an increase in Average Rental Rates of 5.8% and a decrease in Economic Occupancy of 0.3%. As a result, total revenue for Established Communities increased $34,144,000 to $652,764,000, and operating expenses for Established Communities increased $4,278,000 or 2.1% to $209,107,000. Accordingly, NOI for Established Communities increased by $29,866,000 or 7.2% to $443,657,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the year ended December 31, 2007 as compared to the year ended December 31, 2006:


Full Year 2007 Compared to Full Year 2006

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		3.2	%		2.1	%		3.7	%		43.0	%
Mid-Atlantic		5.9	%		5.1	%		6.4	%		16.1	%
Midwest		5.2	%		9.8	%		2.3	%		2.1	%
Pacific NW		11.1	%		0.0	%		17.1	%		4.3	%
No. California		8.6	%		(0.9	%)		12.6	%		22.1	%
So. California		4.8	%		2.2	%		5.9	%		12.4	%

Total		5.5	%		2.1	%		7.2	%		100.0	%


(1)		Total represents each region’s % of total NOI from the Company, including discontinued operations.

Cash concessions are recognized in accordance with Generally Accepted Accounting Principles (“GAAP”) and are amortized over the approximate lease term, which is generally one year. The following table reflects the percentage changes in rental revenue on a GAAP basis and Rental Revenue with Concessions on a Cash Basis for our Established Communities:


				Full Year 07
				vs Full Year
	4Q 07 vs 4Q 06			06
Rental Revenue Change with Concessions on a GAAP Basis		4.4	%		5.5	%

Rental Revenue Change with Concessions on a Cash Basis		4.3	%		4.5	%

Development and Redevelopment Activity

The Company completed the development of two communities during the fourth quarter of 2007:

	•		Avalon Woburn, located in Woburn, MA, is a garden-style community containing 446 apartment homes and was completed for a Total Capital Cost of $83,100,000; and

	•		Avalon Bowery Place II, located in New York, NY, is a mid-rise community containing 90 apartment homes and was completed for a Total Capital Cost of $58,700,000. Avalon Bowery Place II is the final phase of a three phase community containing an aggregate of 657 apartment homes and 109,600 square feet of retail space and was completed for a Total Capital Cost of $306,200,000.

During 2007, the Company completed development of eight communities containing an aggregate of 1,749 apartment homes for a Total Capital Cost of $440,700,000.

The Company commenced the development of four communities during the fourth quarter of 2007: Avalon Huntington, located in Shelton, CT, Avalon at Mission Bay North III, located in San Francisco, CA, Avalon Jamboree Village, located in Irvine, CA, and Avalon Fort Greene, located in New York, NY. These four communities will contain an aggregate of 1,266 apartment homes when completed for an estimated Total Capital Cost of $582,600,000.

During 2007, the Company commenced the development of 12 communities which are expected to contain a total of 3,412 apartment homes for an expected aggregate Total Capital Cost of $1,279,800,000.

During the fourth quarter of 2007, the Company commenced the redevelopment of Avalon at Diamond Heights, located in San Francisco, CA, and Avalon Woodland Hills, located in Woodland Hills, CA. These two communities contain 817 apartment homes and will be redeveloped for an expected Total Capital Cost of $42,100,000, excluding costs incurred prior to the start of redevelopment.

In the fourth quarter of 2007, the Company completed the redevelopment of one community, Avalon Walk,

located in Hamden, CT. This community contains 764 apartment homes and was completed for a Total Capital Cost of $11,200,000, excluding costs incurred prior to the start of redevelopment.

Disposition Activity

During the fourth quarter of 2007, the Company sold one community, Avalon at Stevens Pond. Located in the Boston area, Avalon at Stevens Pond contains a total of 326 apartment homes and was sold for $77,650,000. The sale of this community resulted in a gain as reported in accordance with GAAP of approximately $28,229,000 and an Economic Gain of approximately $22,040,000. The Unleveraged IRR over an approximate four-year holding period was 14.0%.

The Company also completed the sale of its partnership interest in Avalon Grove to its third-party venture partner for $63,446,000 with a gain in accordance with GAAP of $56,320,000 and an Economic Gain of $51,714,000. Avalon Grove, located in the Fairfield-New Haven market of Connecticut, was previously reported as an unconsolidated real estate investment. The Company will continue to manage this community.

Also in the fourth quarter of 2007, the Company recognized the sale of a 70% ownership interest in the joint venture that owns Avalon Del Rey that was previously deferred in accordance with GAAP pursuant to a transfer of ownership that occurred in the fourth quarter of 2006. The Company recognized a gain an accordance with GAAP of $3,607,000 related to this transaction. Beginning in the fourth quarter of 2007, this entity is reported as an unconsolidated real estate entity.

Including dispositions to joint venture partners but excluding a community in which an economic interest was retained, the Company sold four communities and a partnership interest during 2007, containing a total of 1,384 apartment homes, and one land parcel. These communities and the land parcel were sold for an aggregate sales price of approximately $273,896,000, resulting in a GAAP gain of $163,352,000 and an Economic Gain of $145,764,000. Excluding the land parcel, the weighted average Initial Year Market Cap Rate related to these dispositions was 4.6% and the Unleveraged IRR over a weighted average holding period of 9.8 years was 17.8%.

Investment Management Fund Activity

AvalonBay Value Added Fund, L.P. (the “Fund”) is a private, discretionary investment vehicle in which the Company holds an equity interest of approximately 15%.

During 2007, the Fund acquired a total of seven communities, containing an aggregate of 1,564 apartment homes for an aggregate purchase price of $305,450,000.

During the fourth quarter of 2007, the Company completed the redevelopment of Avalon at Civic Center, located in Norwalk, CA and Avalon Sunset, located in Los Angeles, CA on behalf of the Fund. These two communities contain an aggregate of 274 apartment homes and were completed for a Total Capital Cost of $7,900,000, excluding costs incurred prior to the start of redevelopment.

The Fund has invested $777,568,000 as of December 31, 2007. Management expects to invest approximately $46,000,000 of additional funds to redevelop the assets acquired, at which time the Fund will become fully invested.

Financing, Liquidity and Balance Sheet Statistics

In December 2007, the Company repaid $110,000,000 of unsecured notes with an annual interest rate of 6.875% pursuant to their scheduled maturity. In addition, in January 2008, the Company repaid $50,000,000 of unsecured notes with an annual interest rate of 6.625% pursuant to their scheduled maturity.

During the fourth quarter of 2007, the Company increased its existing unsecured credit facility from $650,000,000 to $1,000,000,000. As of December 31, 2007, the Company had $514,500,000 outstanding under its $1,000,000,000 unsecured credit facility. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 30.3% at December 31, 2007. Unencumbered NOI for the year ended December 31, 2007 was 83.3% and Interest Coverage for the fourth quarter of 2007 was 4.1 times.

In August 2007, the Board of Directors authorized an increase in the common stock repurchase program, allowing the Company to acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $300,000,000. From August 2007 to January 2008, the Company repurchased 2,962,716 shares at an average price of $101.26, reaching the $300,000,000 authorized limit.

In February 2008, the Board of Directors authorized a further increase of $200,000,000 in the common stock repurchase program, increasing the total amount the Company can acquire to $500,000,000. Purchases under the expanded authorization will be made after considering the current stock price in relation to the Company’s estimate of net asset value, availability of proceeds from expanded dispositions and liquidity needed to fund the Company’s current and future development activity, among other factors.

First Quarter 2008 Dividend Declaration

The Company announced on February 5, 2008 that its Board of Directors declared a dividend for the first quarter of 2008 of $0.8925 per share of the Company’s common stock (par value $0.01 per share). The declared dividend is a 5.0% or $0.0425 per share increase over the Company’s prior quarterly dividend of $0.85 per share. The common stock dividend is payable on April 15, 2008 to common stockholders of record as of April 1, 2008.

Based on the Midpoint of the Projected FFO per share range provided later in this release, the new dividend rate results in an expected ratio of dividends per share to FFO per share of 71.0% for 2008.

In declaring the increased dividend, the Board of Directors evaluated the Company’s past performance and future prospects for earnings growth. Additional factors considered in determining the increase included current dividend distributions (both common and preferred dividends), the ratio of the current common dividend distribution to the Company’s FFO, the relationship of dividend distributions to taxable income, and expected growth in taxable income. Taxable income growth is not directly comparable to growth in FFO.

The Board of Directors also declared a dividend on the Series H Cumulative Redeemable Preferred Stock (the “Preferred Stock”) (par value $0.01 per share) for the first quarter of 2008. The Preferred Stock dividend is $0.54375 per share and is payable June 16, 2008 to all Series H stockholders of record as of June 2, 2008.

Revised Accounting Interpretation

As discussed in Amendment No. 1 to the Company’s 2006 Annual Report on Form 10-K/A, the Company made a change related to its accounting for land leases. This change resulted in a non-cash charge to operating expenses and reduced reported FFO by $0.03 and $0.13 per share from what would have been reported for the three months and full year ended December 31, 2007 under the Company’s prior accounting treatment. Results for the three months and full year ended December 31, 2006 have also been restated, reducing reported FFO by $0.04 and $0.14 per share from what had previously been reported to reflect the impact of this change in land lease accounting.

2008 Financial Outlook

The following presents the Company’s financial outlook for 2008, the details of which are summarized on Attachment 15.

Third party forecasts generally expect weaker economic conditions during 2008 that suggests a slower rate of employment growth. While slower job growth will negatively impact renter demand, Management anticipates that renter demand will be favorably impacted by a continued reduction in homeownership rates and a general increase in the propensity to rent. Declining home ownership rates are the result of a number of factors, including concerns regarding home prices and economic growth, demographic growth in those age groups that have historically demonstrated a higher propensity to rent as well as tighter underwriting standards for mortgages. Management expects the level of new rental completions in the Company’s markets will decline modestly during 2008 from 2007 levels. Management expects competition from unsold housing inventory made available for rent will remain modest relative to more oversupplied residential markets in the U.S.

Projected EPS is expected to be within a range of $6.50 to $8.50 for the full year 2008. Actual EPS will be impacted by the size and nature of disposition activity for the year.

The Company expects 2008 Projected FFO per share to increase to a range of $4.90 to $5.20 as compared to $4.61 for the full year 2007, resulting in an increase in Projected FFO per share of approximately 9.5% at the mid-point of the range. The Company’s 2007 FFO per share of $4.61 included approximately $545,000 attributable to the gain on sale of a parcel of land. The 2008 Projected FFO includes costs of $3,765,000 previously deferred that are required to be expensed should the Company redeem the Preferred Stock in October 2008. Adjusting for these non-routine items, the Company expects 2008 Projected FFO per share growth of 10.7% at the mid-point of the range. No assurance can be provided that the Company will elect to redeem the Preferred Stock.

Management expects the increase in Projected FFO per share for the full year 2008 as compared to 2007 to be driven primarily by: (i) growth in NOI from Established Communities and other stabilized communities; (ii) an increase in NOI from development and redevelopment; and (iii) lower interest rates on variable rate debt.

For the first quarter of 2008, the Company expects Projected EPS within a range of $0.58 to $0.62. The Company expects Projected FFO per share for the first quarter of 2008 within a range of $1.23 to $1.27. Adjusting for the net impact of $545,000 from land sales included in the Company’s first quarter 2007 FFO per share of $1.11, Projected FFO per share growth in the first quarter of 2008 is expected to be 13.6% at the mid-point of the range.

The Company’s 2008 financial outlook is based on a number of assumptions and estimates, which are provided on Attachment 15 of this release. The primary assumptions and estimates include the following:

Property Operations

	•		The Company expects growth in Established Communities revenue of 2.5% to 4.0%.

	•		The Company expects growth in Established Communities operating expenses of 2.0% to 3.0%, primarily attributable to increases in property taxes, payroll and utilities offset by lower insurance, maintenance and marketing costs.

	•		The Company expects growth in Established Communities NOI within a range of 3.0% to 4.5%.

Development

The following table summarizes the Company’s expectations for 2008 development starts, development completions and cash disbursements for development. Cash disbursements reflect disbursements planned for both 2008 starts and development under construction as of year-end 2007:


2008 Development Activity

	Total
	($ millions)
Development starts	$900 to $1,100
Cash disbursed for development	$	800 to $1,200
Development completions	$	900 to $1,200

	•		Some portion of expected development starts in 2008 may be developed as joint ventures. The Company expects initial apartment home deliveries related to these development starts to primarily occur in 2008 and 2009.

	•		The Company expects to purchase land held for future development totaling $125,000,000 to $175,000,000. Development of these land parcels is not expected to begin during 2008.

	•		The Company expects to finance planned development starts and land purchases with a combination of capital sources, which could include secured or unsecured debt, disposition proceeds, joint ventures or retained cash.

Dispositions

•

The Company expects planned asset sales of $700,000,000 to $1,000,000,000 in 2008.

Capital Markets

	•		The Company expects that it may issue approximately $800,000,000 in new secured or unsecured debt during 2008.

	•		The Company has $196,000,000 of unsecured notes maturing in 2008 that will be repaid by drawing amounts under the Company’s existing unsecured credit facility, new bank facilities, proceeds from dispositions or the issuance of new debt, both secured and/or unsecured.

	•		Beginning in October 2008, the Company has the option to call the 4,000,000 outstanding shares of the 8.7% Preferred Stock at a price of $25.00 per share. No assurance can be provided that the Company will elect to redeem these securities.

The Company expects to release its first quarter 2008 earnings on April 30, 2008 after the market closes. The Company expects to hold a conference call on May 1, 2008 at 1:00 PM EDT to discuss the first quarter 2008 results.

First Quarter 2008 Conference/Event Schedule

The Company is scheduled to present at the Citi Global Property CEO Conference in Palm Beach, FL at 1:55 PM EST on Tuesday, March 4, 2008. Management’s presentation will be followed by a question and answer session during which Management may discuss the Company’s current operating environment; operating trends; development, redevelopment, disposition and acquisition activity; financial outlook and other business and financial matters affecting the Company. A webcast of the Company’s presentation will be available at http://www.avalonbay.com/events beginning March 4, 2008.

Other Matters

The Company will hold a conference call on February 7, 2008 at 1:00 PM EST to review and answer questions about this release, its fourth quarter and full year results, its 2008 financial outlook, the Attachments (described below) and related matters. To participate on the call, dial 1-877-510-2397 domestically and 1-706-634-5877 internationally.

To hear a replay of the call, which will be available from February 7, 2008 at 3:00 PM EST to February 14, 2008

at 11:59 PM EST, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 30335610.

A webcast of the conference call will also be available at http://www.avalonbay.com/earnings, and an on-line playback of the webcast will be available for at least 30 days following the call.

The Company produces Earnings Release Attachments (the “Attachments”) that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company’s website at http://www.avalonbay.com/earnings. To receive future press releases via e-mail, please submit a request through http://www.avalonbay.com/pressrelease.

About AvalonBay Communities, Inc.

As of December 31, 2007, the Company owned or held a direct or indirect ownership interest in 184 apartment communities containing 52,748 apartment homes in ten states and the District of Columbia, of which 21 communities were under construction and eight communities were under reconstruction. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in high barrier-to-entry markets of the United States. More information may be found on the Company’s website at the following address http://www.avalonbay.com. For additional information, please contact John Christie, Senior Director of Investor Relations and Research at 1-703-317-4747 or Thomas J. Sargeant, Chief Financial Officer, at 1-703-317-4635.

Forward-Looking Statements

This release, including its Attachments, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the Company’s use of words such as “expects,” “plans,” “estimates,” “projects,” “intends,” “believes,” “outlook” and similar expressions that do not relate to historical matters. Actual results may differ materially from those expressed or implied by the forward-looking statements as a result of risks and uncertainties, which include the following: changes in local employment conditions, demand for apartment homes, supply of competitive housing products, and other economic conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; increases in costs of materials, labor or other expenses may result in communities that we develop or redevelop failing to achieve expected profitability; delays in completing development, redevelopment and/or lease-up may result in increased financing and construction costs and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of communities may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; or we may abandon development or redevelopment opportunities for which we have already incurred costs. Additional discussions of risks and uncertainties appear in the Company’s filings with the Securities and Exchange Commission, including the Company’s Amendment No. 1 on Form 10-K/A to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 under the headings “Risk Factors” and under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements” and in subsequent quarterly reports on Form 10-Q.

The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the first quarter and full year 2008. The Company may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investment community. The format and extent of future outlooks may be different from the format and extent of the information contained in this release.

Definitions and Reconciliations

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and further explained on Attachment 16, “Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.” Attachment 16 is included in the full earnings release available at the Company’s website at http://www.avalonbay.com/earnings.

FOURTH QUARTER 2007

Supplemental Operating and Financial Data

Table of Contents



Company Profile
Selected Operating and Other Information		Attachment 1
Detailed Operating Information		Attachment 2
Condensed Consolidated Balance Sheets		Attachment 3

Sub-Market Profile
Quarterly Revenue and Occupancy Changes (Established Communities)		Attachment 4
Sequential Quarterly Revenue and Occupancy Changes (Established Communities)		Attachment 5
Full Year Revenue and Occupancy Changes (Established Communities)		Attachment 6

Development, Redevelopment, Acquisition and Disposition Profile
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs		Attachment 7
Summary of Development and Redevelopment Activity		Attachment 8
Development Communities		Attachment 9
Redevelopment Communities		Attachment 10
Summary of Development and Redevelopment Community Activity		Attachment 11
Future Development		Attachment 12
Unconsolidated Real Estate Investments		Attachment 13
Summary of Disposition Activity		Attachment 14

2008 Financial Outlook
2008 Financial Outlook		Attachment 15

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 16

The following is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments are forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Company’s development, redevelopment, construction, and lease-up activities, which could impact the forward-looking statements made are discussed in the paragraph titled “Forward-Looking Statements” in the release to which these attachments relate. In particular, development opportunities may be abandoned; Total Capital Cost of a community may exceed original estimates, possibly making the community uneconomical and/or affecting projected returns; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs; and other risks described in the Company’s filings with the Securities and Exchange Commission, including Amendment No. 1 to the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2006 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
December 31, 2007
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q4		Q4					Full Year		Full Year
	2007		2006 (1)		% Change			2007		2006		% Change
Net income available to common stockholders	$	129,644	$	44,138		193.7	%	$	349,460	$	257,846		35.5	%

Per common share — basic	$	1.66	$	0.59		181.4	%	$	4.44	$	3.48		27.6	%
Per common share — diluted	$	1.65	$	0.58		184.5	%	$	4.38	$	3.42		28.1	%

Funds from Operations	$	89,597	$	79,894		12.1	%	$	368,057	$	320,199		14.9	%
Per common share — diluted	$	1.14	$	1.05		8.6	%	$	4.61	$	4.24		8.7	%

Dividends declared — common	$	65,721	$	58,241		12.8	%	$	268,123	$	232,455		15.3	%
Per common share	$	0.85	$	0.78		9.0	%	$	3.40	$	3.12		9.0	%

Common shares outstanding		77,318,611		74,668,372		3.5	%		77,318,611		74,668,372		3.5	%
Outstanding operating partnership units		64,019		144,955		(55.8	%)		64,019		144,955		(55.8	%)

Total outstanding shares and units		77,382,630		74,813,327		3.4	%		77,382,630		74,813,327		3.4	%


Average shares outstanding — basic		77,901,038		74,357,025		4.8	%		78,680,043		74,125,795		6.1	%
Average operating partnership units outstanding		64,019		148,483		(56.9	%)		105,859		172,255		(38.5	%)
Effect of dilutive securities		870,653		1,392,166		(37.5	%)		1,071,025		1,288,848		(16.9	%)

Average shares outstanding — diluted		78,835,710		75,897,674		3.9	%		79,856,927		75,586,898		5.6	%

DEBT COMPOSITION AND MATURITIES


			% of Total			Average
			Market			Interest			Remaining
Debt Composition (2)	Amount		Cap			Rate (3)			Maturities (2)

Conventional Debt										2008	$	209,220
Long-term, fixed rate	$	1,938,724		18.3	%					2009	$	232,345
Long-term, variable rate		124,211		1.2	%					2010	$	235,614
Variable-rate credit facility		514,500		4.9	%					2011	$	391,903

Subtotal, Conventional		2,577,435		24.4	%		6.3	%		2012	$	531,408


Tax-Exempt Debt
Long-term, fixed rate		205,037		1.9	%
Long-term, variable rate		428,231		4.0	%

Subtotal, Tax-Exempt		633,268		5.9	%		4.9	%

Total Debt	$	3,210,703		30.3	%		6.1	%


⁽¹⁾		Amounts for the three months ended December 31, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

⁽²⁾		Excludes debt associated with communities classified as held for sale.

⁽³⁾		Includes credit enhancement fees, trustees’ fees, etc.

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q407	$	20,099	$	7,180	$	251
Q307	$	19,193	$	7,008	$	93
Q207	$	18,393	$	6,684	$	38
Q107	$	15,433	$	6,606	$	9
Q406	$	13,909	$	6,847	$	92

COMMUNITY INFORMATION


			Apartment
	Communities		Homes

Current Communities		163		45,932
Development Communities		21		6,816
Development Rights		48		13,656

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
December 31, 2007
(Dollars in thousands except per share data)
(unaudited)


	Q4			Q4						Full Year			Full Year
	2007			2006 (1)			% Change			2007			2006			% Change
Revenue:
Rental and other income	$	210,664		$	187,715			12.2	%	$	806,599		$	715,170			12.8	%
Management, development and other fees		1,721			2,073			(17.0	%)		6,142			6,259			(1.9	%)

Total		212,385			189,788			11.9	%		812,741			721,429			12.7	%


Operating expenses:
Direct property operating expenses, excluding property taxes		50,396			47,362			6.4	%		192,338			175,927			9.3	%
Property taxes		19,699			17,011			15.8	%		74,912			66,786			12.2	%
Property management and other indirect operating expenses		10,689			9,085			17.7	%		38,627			34,177			13.0	%
Investments and investment management (2)		5,604			1,773			216.1	%		11,737			7,030			67.0	%

Total		86,388			75,231			14.8	%		317,614			283,920			11.9	%


Interest expense, net		(26,262	)		(28,397	)		(7.5	%)		(97,545	)		(109,184	)		(10.7	%)
General and administrative expense		(8,427	)		(6,372	)		32.3	%		(28,494	)		(24,767	)		15.0	%
Joint venture income and minority interest expense (3)		59,160			6,253			846.1	%		57,584			6,882			736.7	%
Depreciation expense		(47,179	)		(40,753	)		15.8	%		(179,549	)		(160,442	)		11.9	%
Gain (loss) on sale of land		—			(152	)		(100.0	%)		545			13,519			(96.0	%)

Income from continuing operations		103,289			45,136			128.8	%		247,668			163,517			51.5	%
Discontinued operations: (4)
Income from discontinued operations		301			1,177			(74.4	%)		4,005			5,618			(28.7	%)
Gain on sale of communities		28,229			—			N/A			106,487			97,411			9.3	%

Total discontinued operations		28,530			1,177			N/A			110,492			103,029			7.2	%

Net income		131,819			46,313			184.6	%		358,160			266,546			34.4	%
Dividends attributable to preferred stock		(2,175	)		(2,175	)		—			(8,700	)		(8,700	)		—

Net income available to common stockholders	$	129,644		$	44,138			193.7	%	$	349,460		$	257,846			35.5	%

Net income per common share — basic	$	1.66		$	0.59			181.4	%	$	4.44		$	3.48			27.6	%

Net income per common share — diluted	$	1.65		$	0.58			184.5	%	$	4.38		$	3.42			28.1	%


(1)		Amounts for the three months ended December 31, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

(2)		Reflects costs incurred related to investment acquisition, investment management and abandoned pursuits. Abandoned pursuit costs can be volatile period over period with no reporting period being an indicator of future results.

(3)		Amounts for the three months and year ended December 31, 2007 and 2006 include $56,320 and $6,609, respectively related to the sale of an unconsolidated community. Amounts for the three months and year ended December 31, 2007 also include $3,607 related to the sale of a 70% ownership interest in a joint venture entity.

(4)		Reflects net income for communities classified as discontinued operations as of December 31, 2007 and communities sold during the period from January 1, 2006 through December 31, 2007. The following table details income from discontinued operations for the periods shown:


	Q4			Q4			Full Year			Full Year
	2007			2006			2007			2006
Rental income	$	571		$	4,012		$	10,911		$	17,658
Operating and other expenses		(270	)		(1,447	)		(4,043	)		(6,491	)
Interest expense, net		—			(455	)		(687	)		(1,862	)
Depreciation expense		—			(933	)		(2,176	)		(3,687	)

Income from discontinued operations (5)	$	301		$	1,177		$	4,005		$	5,618


(5)		NOI for discontinued operations totaled $301 and $6,868, of which $0 related to assets held for sale for the three months and full year ended December 31, 2007, respectively.

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)


	December 31,			December 31,
	2007			2006
Real estate	$	6,315,313		$	5,586,521
Less accumulated depreciation		(1,259,558	)		(1,080,313	)

Net operating real estate		5,055,755			4,506,208

Construction in progress, including land		953,004			641,781
Land held for development		288,423			202,314
Operating real estate assets held for sale, net		—			160,059


Total real estate, net		6,297,182			5,510,362

Cash and cash equivalents		21,222			8,284
Cash in escrow		189,171			135,917
Resident security deposits		29,542			26,429
Other assets (1)		194,288			164,499

Total assets	$	6,731,405		$	5,845,491


Unsecured senior notes, net	$	1,893,499		$	2,153,078
Unsecured facility		514,500			—
Notes payable, net		800,203			648,350
Resident security deposits		42,477			37,654
Liabilities related to assets held for sale		—			69,100
Other liabilities		430,920			345,844

Total liabilities	$	3,681,599		$	3,254,026


Minority interest		23,152			18,311

Stockholders’ equity		3,026,654			2,573,154

Total liabilities and stockholders’ equity	$	6,731,405		$	5,845,491


(1)		Other assets includes $0 and $3,821 relating to assets classified as held for sale as of December 31, 2007 and December 31, 2006, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes — Established Communities (1)

December 31, 2007


	Apartment
	Homes		Average Rental Rates(2)						Economic Occupancy							Rental Revenue ($000’s) (3)
			Q4 07		Q4 06		% Change		Q4 07		Q4 06		% Change			Q4 07		Q4 06		% Change
Northeast
Boston, MA		3,619	$	1,884	$	1,869		0.8%		96.4%		96.0%		0.4%		$	19,707	$	19,470		1.2%
Fairfield-New Haven, CT		2,412		2,044		1,971		3.7%		96.5%		96.6%		(0.1%	)		14,267		13,773		3.6%
New York, NY		1,730		2,485		2,410		3.1%		96.9%		96.8%		0.1%			12,497		12,105		3.2%
Long Island, NY		1,469		2,342		2,284		2.5%		95.1%		96.0%		(0.9%	)		9,812		9,658		1.6%
Northern New Jersey		1,182		2,712		2,563		5.8%		95.9%		97.1%		(1.2%	)		9,224		8,815		4.6%
Central New Jersey		814		1,738		1,669		4.1%		95.9%		97.2%		(1.3%	)		4,071		3,959		2.8%

Northeast Average		11,226		2,148		2,086		3.0%		96.2%		96.5%		(0.3%	)		69,578		67,780		2.7%


Mid-Atlantic
Washington, DC		5,215		1,777		1,710		3.9%		96.7%		97.3%		(0.6%	)		26,883		26,015		3.3%
Baltimore, MD		542		1,269		1,245		1.9%		96.1%		95.9%		0.2%			1,983		1,943		2.1%

Mid-Atlantic Average		5,757		1,729		1,667		3.7%		96.7%		97.2%		(0.5%	)		28,866		27,958		3.2%


Midwest
Chicago, IL		887		1,178		1,157		1.8%		97.3%		96.1%		1.2%			3,043		2,955		3.0%

Midwest Average		887		1,178		1,157		1.8%		97.3%		96.1%		1.2%			3,043		2,955		3.0%


Pacific Northwest
Seattle, WA		2,278		1,313		1,202		9.2%		96.4%		96.1%		0.3%			8,649		7,902		9.5%

Pacific Northwest Average		2,278		1,313		1,202		9.2%		96.4%		96.1%		0.3%			8,649		7,902		9.5%


Northern California
San Jose, CA		4,292		1,772		1,631		8.6%		97.1%		97.1%		0.0%			22,146		20,392		8.6%
Oakland-East Bay, CA		1,955		1,419		1,346		5.4%		97.3%		96.8%		0.5%			8,099		7,650		5.9%
San Francisco, CA		1,862		2,028		1,928		5.2%		97.7%		96.0%		1.7%			11,074		10,362		6.9%

Northern California Average		8,109		1,746		1,631		7.1%		97.3%		96.8%		0.5%			41,319		38,404		7.6%


Southern California
Los Angeles, CA		1,198		1,688		1,616		4.5%		95.9%		95.8%		0.1%			5,817		5,563		4.6%
San Diego, CA		1,058		1,461		1,438		1.6%		94.6%		94.8%		(0.2%	)		4,385		4,324		1.4%
Orange County, CA		916		1,478		1,419		4.2%		96.3%		96.9%		(0.6%	)		3,913		3,778		3.6%

Southern California Average		3,172		1,552		1,499		3.5%		95.6%		95.8%		(0.2%	)		14,115		13,665		3.3%


Average/Total Established		31,429	$	1,819	$	1,741		4.5%		96.5%		96.6%		(0.1%	)	$	165,570	$	158,664		4.4%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of 2006 to 2007 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

(3)		With concessions presented on a cash basis, rental revenue from Established Communities increased 4.3% between years.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes — Established Communities (1)
December 31, 2007


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000’s)
			Q4 07		Q307		% Change			Q4 07			Q307			% Change			Q4 07		Q307		% Change
Northeast
Boston, MA		3,619	$	1,884	$	1,882		0.1	%		96.4	%		95.9	%		0.5	%	$	19,707	$	19,614		0.5	%
Fairfield-New Haven, CT		2,412		2,044		2,046		(0.1	%)		96.5	%		97.3	%		(0.8	%)		14,267		14,412		(1.0	%)
New York, NY		1,730		2,485		2,508		(0.9	%)		96.9	%		97.0	%		(0.1	%)		12,497		12,627		(1.0	%)
Long Island, NY		1,469		2,342		2,351		(0.4	%)		95.1	%		94.2	%		0.9	%		9,812		9,759		0.5	%
Northern New Jersey		1,182		2,712		2,674		1.4	%		95.9	%		97.3	%		(1.4	%)		9,224		9,230		(0.1	%)
Central New Jersey		814		1,738		1,705		1.9	%		95.9	%		97.6	%		(1.7	%)		4,071		4,065		0.1	%

Northeast Average		11,226		2,148		2,147		0.0	%		96.2	%		96.4	%		(0.2	%)		69,578		69,707		(0.2	%)


Mid-Atlantic
Washington, DC		5,215		1,777		1,784		(0.4	%)		96.7	%		96.2	%		0.5	%		26,883		26,853		0.1	%
Baltimore, MD		542		1,269		1,275		(0.5	%)		96.1	%		95.9	%		0.2	%		1,983		1,989		(0.3	%)

Mid-Atlantic Average		5,757		1,729		1,736		(0.4	%)		96.7	%		96.2	%		0.5	%		28,866		28,842		0.1	%


Midwest
Chicago, IL		887		1,178		1,191		(1.1	%)		97.3	%		95.2	%		2.1	%		3,043		3,016		0.9	%

Midwest Average		887		1,178		1,191		(1.1	%)		97.3	%		95.2	%		2.1	%		3,043		3,016		0.9	%


Pacific Northwest
Seattle, WA		2,278		1,313		1,289		1.9	%		96.4	%		97.1	%		(0.7	%)		8,649		8,557		1.1	%

Pacific Northwest Average		2,278		1,313		1,289		1.9	%		96.4	%		97.1	%		(0.7	%)		8,649		8,557		1.1	%


Northern California
San Jose, CA		4,292		1,772		1,737		2.0	%		97.1	%		97.0	%		0.1	%		22,146		21,709		2.0	%
Oakland-East Bay, CA		1,955		1,419		1,407		0.9	%		97.3	%		97.0	%		0.3	%		8,099		8,004		1.2	%
San Francisco, CA		1,862		2,028		2,008		1.0	%		97.7	%		97.3	%		0.4	%		11,074		10,910		1.5	%

Northern California Average		8,109		1,746		1,721		1.5	%		97.3	%		97.0	%		0.3	%		41,319		40,623		1.7	%


Southern California
Los Angeles, CA		1,198		1,688		1,684		0.2	%		95.9	%		96.6	%		(0.7	%)		5,817		5,845		(0.5	%)
San Diego, CA		1,058		1,461		1,460		0.1	%		94.6	%		94.9	%		(0.3	%)		4,385		4,396		(0.3	%)
Orange County, CA		916		1,478		1,477		0.1	%		96.3	%		95.2	%		1.1	%		3,913		3,864		1.3	%

Southern California Average		3,172		1,552		1,549		0.2	%		95.6	%		95.7	%		(0.1	%)		14,115		14,105		0.1	%


Average/Total Established		31,429	$	1,819	$	1,812		0.4	%		96.5	%		96.5	%		0.0	%	$	165,570	$	164,850		0.4	%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of third and fourth quarter of 2007 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

Attachment 6

AvalonBay Communities, Inc.
Full Year Revenue and Occupancy Changes — Established Communities (1)
December 31, 2007


	Apartment
	Homes		Average Rental Rates (2)						Economic Occupancy							Rental Revenue ($000’s)
			YTD 07		YTD 06		% Change		YTD 07		YTD 06		% Change			YTD 07		YTD 06		% Change
Northeast
Boston, MA		3,619	$	1,875	$	1,862		0.7%		96.0%		96.0%		0.0%		$	78,117	$	77,600		0.7%
Fairfield-New Haven, CT		2,412		2,024		1,920		5.4%		96.5%		96.9%		(0.4%	)		56,499		53,799		5.0%
New York, NY		1,730		2,482		2,373		4.6%		96.7%		96.9%		(0.2%	)		49,849		47,762		4.4%
Long Island, NY		1,469		2,329		2,248		3.6%		95.4%		96.4%		(1.0%	)		39,170		38,195		2.6%
Northern New Jersey		1,182		2,652		2,488		6.6%		96.5%		97.1%		(0.6%	)		36,299		34,257		6.0%
Central New Jersey		814		1,700		1,674		1.6%		96.7%		96.2%		0.5%			16,055		15,722		2.1%

Northeast Average		11,226		2,129		2,057		3.5%		96.2%		96.5%		(0.3%	)		275,989		267,335		3.2%


Mid-Atlantic
Washington, DC		5,215		1,768		1,654		6.9%		96.0%		96.8%		(0.8%	)		106,237		100,154		6.1%
Baltimore, MD		542		1,268		1,201		5.6%		95.9%		97.2%		(1.3%	)		7,904		7,578		4.3%

Mid-Atlantic Average		5,757		1,721		1,611		6.8%		96.0%		96.9%		(0.9%	)		114,141		107,732		5.9%


Midwest
Chicago, IL		887		1,187		1,132		4.9%		95.6%		95.3%		0.3%			12,070		11,478		5.2%

Midwest Average		887		1,187		1,132		4.9%		95.6%		95.3%		0.3%			12,070		11,478		5.2%


Pacific Northwest
Seattle, WA		2,278		1,274		1,148		11.0%		96.4%		96.3%		0.1%			33,552		30,190		11.1%

Pacific Northwest Average		2,278		1,274		1,148		11.0%		96.4%		96.3%		0.1%			33,552		30,190		11.1%


Northern California
San Jose, CA		4,292		1,714		1,567		9.4%		97.2%		96.9%		0.3%			85,750		78,137		9.7%
Oakland-East Bay, CA		1,955		1,392		1,299		7.2%		96.9%		96.7%		0.2%			31,644		29,459		7.4%
San Francisco, CA		1,862		1,989		1,861		6.9%		96.7%		96.4%		0.3%			42,990		40,117		7.2%

Northern California Average		8,109		1,699		1,569		8.3%		97.0%		96.7%		0.3%			160,384		147,713		8.6%


Southern California
Los Angeles, CA		1,198		1,667		1,577		5.7%		95.9%		95.8%		0.1%			22,984		21,734		5.8%
San Diego, CA		1,058		1,455		1,403		3.7%		95.1%		95.7%		(0.6%	)		17,575		17,042		3.1%
Orange County, CA		916		1,462		1,380		5.9%		96.1%		96.6%		(0.5%	)		15,434		14,648		5.4%

Southern California Average		3,172		1,537		1,462		5.1%		95.7%		96.0%		(0.3%	)		55,993		53,424		4.8%


Average/Total Established		31,429	$	1,795	$	1,697		5.8%		96.3%		96.6%		(0.3%	)	$	652,129	$	617,872		5.5%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of 2006 to 2007 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

Attachment 7

AvalonBay Communities, Inc.
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs
For the Year Ended December 31, 2007
(Dollars in thousands except per home data)


										Categorization of 2007 Add’l Capitalized Value ⁽⁴⁾														2007 Maintenance Expensed Per Home ⁽⁶⁾
										Acquisitions,											Non-Rev
							2007 Add’l			Construction,											Generating
	Apartment		Balance at		Balance at		Capitalized			Redevelopment			Revenue		Non-Rev						Capex			Carpet			Other
Current Communities ⁽¹⁾	Homes ⁽²⁾		12-31-07 ⁽³⁾		12-31-06 ⁽³⁾		Value			& Dispositions			Generating ⁽⁵⁾		Generating			Total			Per Home			Replacement			Maintenance			Total
Total Stabilized Communities		35,469	$	4,392,636	$	4,357,334	$	35,302		$	21,358	⁽⁷⁾	$	92	$	13,852		$	35,302		$	391		$	162		$	1,585		$	1,747

Development Communities ⁽⁸⁾		8,565		1,605,287		697,397		907,890			907,890			—		—			907,890			—			5			312			317

Dispositions		—		—		156,652		(156,652	)		(156,652	)		—		—			(156,652	)		—			35			244			279

Redevelopment Communities ⁽⁸⁾		2,509		209,485		195,442		14,043			14,043			—		—			14,043			—			119			1,371			1,490

Corporate		—		36,799		34,405		2,394			1,063	⁽⁹⁾		—		1,331	⁽⁹⁾		2,394			—			—			—			—


Total		46,543	$	6,244,207	$	5,441,230	$	802,977		$	787,702		$	92	$	15,183		$	802,977		$	298	⁽¹⁰⁾	$	131	⁽¹¹⁾	$	1,339	⁽¹¹⁾	$	1,470	⁽¹¹⁾


(1)		For the purpose of this table, Current Communities excludes communities held by unconsolidated real estate joint ventures.

(2)		Apartment homes as of 12/31/07; does not include unconsolidated communities.

(3)		Total gross fixed assets excluding land.

(4)		Policy is to capitalize if the item exceeds $15 and extends the useful life of the asset. Personal property is capitalized if the item is a new addition and it exceeds $2.5.

(5)		Represents revenue generating or expense saving expenditures, such as water saving devices and submetering equipment.

(6)		Other maintenance includes maintenance, landscaping, redecorating and appliance replacement costs.

(7)		Includes one acquisition community that is currently wholly-owned.

(8)		Represents communities that were under construction/reconstruction during 2007, including communities where construction/reconstruction has been completed.

(9)		Represents primarily computer equipment and leasehold improvements related to corporate offices.

(10)		Total non-revenue generating capitalized costs per home excludes corporate capitalized costs.

(11)		Total 2007 maintenance expensed per home excludes maintenance costs related to dispositions.

Attachment 8

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity (1) as of December 31, 2007


			Number		Number		Total
			of		of		Capital Cost (2)
			Communities		Homes		(millions)
Portfolio Additions:
2007 Annual Completions
Development				8		1,749	$	440.7
Redevelopment	(3	)		5		1,847		32.9

Total Additions				13		3,596	$	473.6


2006 Annual Completions
Development				6		1,368	$	375.2
Redevelopment				2		506		10.1

Total Additions				8		1,874	$	385.3


Pipeline Activity:	(4	)
Currently Under Construction
Development				21		6,816	$	2,162.5
Redevelopment	(3	)		8		2,231		78.1

Subtotal				29		9,047	$	2,240.6


Planning
Development Rights				48		13,656	$	3,918.0

Total Pipeline				77		22,703	$	6,158.6


(1)		Represents activity for consolidated and unconsolidated entities.

(2)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		Represents only cost of redevelopment activity, does not include original acquisition cost.

(4)		Information represents projections and estimates.

This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the fourth quarter of 2007.

Attachment 9

AvalonBay Communities, Inc.
Development Communities as of December 31, 2007


	Percentage					Total			Schedule									Avg
	Ownership			# of		Capital												Rent								% Occ
	Upon			Apt		Cost (1)						Initial				Stabilized		Per		% Comp			% Leased			Physical			Economic
	Completion			Homes		(millions)			Start			Occupancy		Complete		Ops (1)		Home (1)		(2)			(3)			(4)			(1) (5)
																		Inclusive of
																		Concessions
																		See Attachment #16
Under Construction:
1. Avalon Riverview North New York, NY		100	%		602	$	175.6			Q3 2005			Q3 2007		Q2 2008		Q4 2008	$	2,895		86.0	%		77.7	%		71.6	%		45.3	%
2. Avalon Danvers (6) Danvers, MA		100	%		433		84.8			Q4 2005			Q1 2007		Q3 2008		Q1 2009		1,505		61.4	%		60.7	%		50.1	%		48.0	%
3. Avalon on the Sound II New Rochelle, NY		100	%		588		181.8			Q1 2006			Q2 2007		Q2 2008		Q4 2008		2,535		77.9	%		56.0	%		55.3	%		42.8	%
4. Avalon Meydenbauer Bellevue, WA		100	%		368		84.3			Q1 2006			Q1 2008		Q3 2008		Q1 2009		1,625		17.7	%		11.1	%		9.2	%		N/A
5. Avalon at Dublin Station I Dublin, CA		100	%		305		85.8			Q2 2006			Q4 2007		Q2 2008		Q4 2008		1,980		33.4	%		22.0	%		15.7	%		2.0	%
6. Avalon at Lexington Hills Lexington, MA		100	%		387		86.2			Q2 2006			Q2 2007		Q3 2008		Q1 2009		1,985		44.7	%		38.2	%		29.5	%		24.5	%
7. Avalon Encino Los Angeles, CA		100	%		131		61.5			Q3 2006			Q3 2008		Q4 2008		Q1 2009		2,650		N/A			N/A			N/A			N/A
8. Avalon Warner Place (7) Canoga Park, CA		100	%		210		53.9			Q4 2006			Q2 2008		Q3 2008		Q1 2009		2,020		N/A			N/A			N/A			N/A
9. Avalon Acton (8) Acton, MA		100	%		380		68.8			Q4 2006			Q4 2007		Q4 2008		Q2 2009		1,345		22.1	%		23.9	%		15.8	%		7.5	%
10. Avalon Morningside Park (8) New York, NY		100	%		296		125.5			Q1 2007			Q2 2008		Q1 2009		Q3 2009		3,640		N/A			N/A			N/A			N/A
11. Avalon White Plains White Plains, NY		100	%		393		154.5			Q2 2007			Q4 2008		Q4 2009		Q2 2010		2,820		N/A			N/A			N/A			N/A
12. Avalon at Tinton Falls Tinton Falls, NJ		100	%		216		41.2			Q2 2007			Q2 2008		Q4 2008		Q2 2009		1,760		N/A			N/A			N/A			N/A
13. Avalon Fashion Valley San Diego, CA		100	%		161		64.7			Q2 2007			Q3 2008		Q1 2009		Q2 2009		2,380		N/A			N/A			N/A			N/A
14. Avalon Anaheim Anaheim, CA		100	%		251		102.7			Q2 2007			Q2 2009		Q3 2009		Q1 2010		2,530		N/A			N/A			N/A			N/A
15. Avalon Union City Union City, CA		100	%		438		125.2			Q3 2007			Q2 2009		Q3 2009		Q1 2010		1,895		N/A			N/A			N/A			N/A
16. Avalon at the Hingham Shipyard Hingham, MA		100	%		235		52.7			Q3 2007			Q3 2008		Q1 2009		Q2 2009		2,090		N/A			N/A			N/A			N/A
17. Avalon Sharon Sharon, MA		100	%		156		30.7			Q3 2007			Q2 2008		Q4 2008		Q1 2009		1,610		N/A			N/A			N/A			N/A
18. Avalon Huntington Shelton, CT		100	%		99		26.1			Q4 2007			Q4 2008		Q2 2009		Q3 2009		2,240		N/A			N/A			N/A			N/A
19. Avalon at Mission Bay North III San Francisco, CA		100	%		260		157.8			Q4 2007			Q3 2009		Q4 2009		Q2 2010		3,745		N/A			N/A			N/A			N/A
20. Avalon Jamboree Village Irvine, CA		100	%		279		78.3			Q4 2007			Q2 2009		Q4 2009		Q2 2010		2,060		N/A			N/A			N/A			N/A
21. Avalon Fort Greene New York, NY		100	%		628		320.4			Q4 2007			Q2 2009		Q2 2010		Q4 2010		3,605		N/A			N/A			N/A			N/A

Subtotal/Weighted Average					6,816	$	2,162.5											$	2,395

Completed this Quarter:
1. Avalon Woburn Woburn, MA		100	%		446		83.1			Q4 2005			Q3 2006		Q4 2007		Q1 2008		1,605		100.0	%		99.1	%		98.0	%		95.8	%
2. Avalon Bowery Place II (8) New York, NY		100	%		90		58.7			Q3 2006			Q4 2007		Q4 2007		Q2 2008		4,090		100.0	%		98.9	%		91.1	%		42.4	%

Subtotal/Weighted Average					536	$	141.8											$	2,020

Total/Weighted Average					7,352	$	2,304.3											$	2,370

Weighted Average Projected NOI as a % of Total Capital Cost (1) (9)							6.4	%	Inclusive of Concessions — See Attachment #16

Non-Stabilized Development Communities: (10)									% Economic Occ					Asset Cost Basis, Non-Stabilized Development												Source

Prior Quarter Completions:										(1	) (5)			Capital Cost, Prior Quarter Completions									$	171.0		Att. 9
Avalon Wilshire					123	$	47.6							Capital Cost, Current Completions										141.8		Att. 9
Avalon Lyndhurst					328		83.1							Capital Cost, Under Construction										2,162.5		Att. 9
Avalon at Glen Cove North					111		40.3							Less: Remaining to Invest, Under Construction

Total					562	$	171.0			91.1	%			Total Remaining to Invest							1,038.9					Att. 11

														Capital Cost, Projected Q1 2008 Starts							(95.2	)				Att. 11, Footnote 5

																								(943.7	)

														Total Asset Cost Basis, Non-Stabilized Development									$	1,531.6

Q4 2007 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $5.4 million. See Attachment #16.


(1)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		Includes apartment homes for which construction has been completed and accepted by management as of January 25, 2008.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of January 25, 2008.

(4)		Physical occupancy based on apartment homes occupied as of January 25, 2008.

(5)		Represents Economic Occupancy for the fourth quarter of 2007.

(6)		Avalon Danvers experienced a fire in April 2007. The Company expects insurance proceeds will cover substantially all losses. The schedule cited above reflects delays associated with the fire.

(7)		This community was formerly known as Avalon Canoga Park.

(8)		This community is being financed in part by third-party tax-exempt debt.

(9)		The Weighted Average calculation is based on the Company’s pro rata share of the Total Capital Cost for each community.

(10)		Represents Development Communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter. Estimates are based on the Company’s pro rata share of the Total Capital Cost for each community.

		This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the fourth quarter of 2007.

Attachment 10

AvalonBay Communities, Inc.
Redevelopment Communities as of December 31, 2007


						Cost (millions)					Schedule								Avg		Number of Homes
				# of		Pre-		Total											Rent				Out of
	Percentage			Apt		Redevelopment		Capital			Acquisition /						Restabilized		Per		Completed		Service
	Ownership			Homes		Capital Cost		Cost (1)(2)			Completion		Start		Complete		Ops (2)		Home (2)		to date		@ 12/31/07
																			Inclusive of
																			Concessions
																			See Attachment #16
Under Redevelopment:

AvalonBay
1. Avalon at AutumnWoods Fairfax, VA		100	%		420	$	31.2	$	38.3			Q4 1996		Q3 2006		Q2 2008		Q4 2008	$	1,370		377		8
2. Essex Place Peabody, MA		100	%		286		23.7		34.5			Q3 2004		Q3 2007		Q2 2009		Q4 2009		1,295		—		12
3. Avalon Redmond Place Redmond, WA		100	%		222		26.3		31.3			Q3 1999		Q3 2007		Q4 2008		Q2 2009		1,545		82		15
4. Avalon Woodland Hills Woodland Hills, CA		100	%		663		72.1		109.3			Q4 1997		Q4 2007		Q1 2010		Q3 2010		1,960		—		37
5. Avalon at Diamond Heights San Francisco, CA		100	%		154		25.3		30.2			Q2 1994		Q4 2007		Q4 2010		Q2 2011		2,445		8		10

Subtotal					1,745	$	178.6	$	243.6										$	1,700		467		82

Investment Management Fund (The “Fund”)
1. Avalon at Poplar Creek Schaumburg, IL		15	%		196		25.2		28.6			Q2 2006		Q4 2006		Q1 2008		Q3 2008		1,215		196		—
2. Avalon Paseo Place Fremont, CA		15	%		134		19.8		25.5			Q4 2005		Q2 2007		Q2 2008		Q4 2008		1,445		114		9
3. Avalon Cedar Place Columbia, MD		15	%		156		21.0		25.0			Q4 2006		Q3 2007		Q1 2009		Q3 2009		1,225		25		11

Subtotal					486	$	66.0	$	79.1										$	1,280		335		20

Total/Weighted Average					2,231	$	244.6	$	322.7										$	1,610		802		102

Completed this Quarter:
AvalonBay
1. Avalon Walk I and II (3) Hamden, CT		100	%		764		59.4		70.6			Q3 1992 Q3 1994		Q1 2006		Q4 2007		Q2 2008		1,310		747		—
Investment Management Fund (The “Fund”)

1. Avalon at Civic Center Norwalk, CA		15	%		192		38.1		43.0			Q4 2005		Q4 2006		Q4 2007		Q2 2008		1,705		192		—
2. Avalon Sunset (4) Los Angeles, CA		15	%		82		17.9		20.9			Q4 2005		Q1 2007		Q4 2007		Q1 2008		2,020		82		—
Subtotal					274	$	56.0	$	63.9										$	1,800		274		—

Total/Weighted Average					1,038	$	115.4	$	134.5										$	1,440		1,021		—

Grand Total/Weighted Average					3,269	$	360.0	$	457.2										$	1,555		1,823		102

Weighted Average Projected NOI as a % of Total Capital Cost (2)									10.2	%	Inclusive of Concessions — See Attachment #16


(1)		Inclusive of acquisition cost.

(2)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		In Q4 2007, the Company determined that the remaining apartments to be renovated will be completed in the course of their normal turnover. As a result, this asset will be reflected in other stabilized communities in 2008.

(4)		This community was formerly known as Fuller Martel.

		This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the fourth quarter of 2007.

Attachment 11

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of December 31, 2007

(Dollars in Thousands)

DEVELOPMENT(2)


	Apt Homes		Total Capital		Cost of Homes				Construction in
	Completed &		Cost Invested		Completed &		Remaining to		Progress at
	Occupied		During Period (3)		Occupied (4)		Invest (5)		Period End (6)
Total - 2006 Actual		1,527	$	652,828	$	311,155	$	919,358	$	626,034

2007 Actual:
Quarter 1		464	$	167,109	$	106,100	$	908,630	$	673,945
Quarter 2		724		240,036		165,064		974,266		798,358
Quarter 3		774		220,762		214,732		1,334,784		792,320
Quarter 4		578		338,951		178,371		1,038,879		924,761

Total - 2007 Actual		2,540	$	966,858	$	664,267


2008 Projected:
Quarter 1		719	$	237,695	$	193,188	$	801,184	$	913,371
Quarter 2		884		194,284		216,190		606,900		893,348
Quarter 3		960		177,308		253,573		435,592		824,671
Quarter 4		636		161,350		197,678		268,241		780,827

Total - 2008 Projected		3,199	$	770,637	$	860,629

REDEVELOPMENT


			Total Capital				Reconstruction in
	Avg Homes		Cost Invested		Remaining to		Progress at
	Out of Service		During Period (3)		Invest (5)		Period End (6)
Total - 2006 Actual			$	15,543	$	14,991	$	17,602

2007 Actual:
Quarter 1		63	$	3,332	$	21,704	$	14,538
Quarter 2		105		3,014		24,290		16,403
Quarter 3		97		3,896		61,583		16,182
Quarter 4		77		8,370		69,136		30,683

Total - 2007 Actual			$	18,612


2008 Projected:
Quarter 1		92	$	11,679	$	57,456	$	30,696
Quarter 2		120		11,434		46,023		33,210
Quarter 3		115		10,400		35,623		30,010
Quarter 4		82		9,223		26,400		24,934

Total - 2008 Projected			$	42,736


(1)		Data is presented for all communities currently under development or redevelopment and those communities for which development or redevelopment is expected to begin within the next 90 days.


(2)		Projected periods include data for consolidated joint ventures at 100%. The offset for joint venture partners’ participation is reflected as minority interest.

(3)		Represents Total Capital Cost incurred or expected to be incurred during the quarter, year or in total. See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.


(4)		Represents projected Total Capital Cost of apartment homes completed and occupied during the quarter. Calculated by dividing Total Capital Cost for each Development Community by number of homes for the community, multiplied by the number of homes completed and occupied during the quarter.

(5)		Represents projected Total Capital Cost remaining to invest on communities currently under development or redevelopment and those for which development or redevelopment is expected to begin within the next 90 days. Remaining to invest for Q4 2007 includes $95.2 million attributed to two anticipated Q1 2008 development starts and $15.3 million related to four anticipated Q1 2008 redevelopment starts.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q4 2007 includes $1.6 million related to three unconsolidated investments in the Fund, and is reflected in other assets for financial reporting purposes.

Attachment 12

AvalonBay Communities, Inc.
Future Development as of December 31, 2007

DEVELOPMENT RIGHTS (1)


		Estimated		Total
		Number		Capital Cost (1)
Location of Development Right		of Homes		(millions)
1.	Coram, NY		200	$	46
2.	Randolph, MA		276		49
3.	Northborough, MA		350		61
4.	Pleasant Hill, CA		422		153
5.	Kirkland, WA Phase II		189		60
6.	Los Angeles, CA		174		78
7.	Canoga Park, CA		299		85
8.	Bellevue, WA		408		126
9.	Norwalk, CT		311		84
10.	North Bergen, NJ		164		48
11.	Rockville Centre, NY		349		129
12.	Chicago, IL Phase I		492		173
13.	New York, NY		678		307
14.	Wilton, CT		100		24
15.	Camarillo, CA		376		55
16.	Irvine, CA Phase III		170		73
17.	San Francisco, CA		157		50
18.	Brooklyn, NY		825		443
19.	Seattle, WA		201		65
20.	Cohasset, MA		200		38
21.	Dublin, CA Phase II		405		105
22.	Greenburgh, NY Phase II		444		112
23.	Plymouth, MA Phase II		69		17
24.	Irvine, CA Phase II		179		57
25.	Seattle, WA II		234		76
26.	Wheaton, MD		320		107
27.	West Long Branch, NJ		180		34
28.	Andover, MA		115		21
29.	Milford, CT		284		45
30.	Highland Park, NJ		178		42
31.	Stratford, CT		146		23
32.	Oyster Bay, NY		150		42
33.	Shelton, CT		250		66
34.	Yonkers, NY		400		88
35.	Concord, MA		150		38
36.	Bloomingdale, NJ		173		38
37.	North Andover, MA		526		98
38.	Tysons Corner, VA		439		121
39.	Roselle Park, NJ		300		70
40.	Gaithersburg, MD		254		41
41.	Chicago, IL Phase II		492		141
42.	Alexandria, VA		283		73
43.	Garden City, NY		160		58
44.	Hackensack, NJ		230		56
45.	Plainview, NY		160		38
46.	Wanaque, NJ		210		45
47.	Yaphank, NY		343		57
48.	Rockville, MD		241		62



	Total		13,656	$	3,918


(1)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

Attachment 13

Avalon Bay Communities Inc.
Unconsolidated Real Estate Investments as of December 31, 2007

(Dollars in Thousands)


									AVB												AVB's
					# of		Total		Book		Outstanding Debt										Share
Unconsolidated		Percentage			Apt		Capital		Value						Interest			Maturity			of Partnership
Real Estate Investments		Ownership			Homes		Cost (1)		Investment (2)		Amount		Type		Rate			Date			Debt
AvalonBay Value Added Fund, LP
1.	Avalon at Redondo Beach		N/A			105	$	24,424		N/A	$	16,765	Fixed			4.84	%	Oct 2011			$	2,548
	Los Angeles, CA
2.	Avalon Lakeside		N/A			204		18,053		N/A		12,056	Fixed			5.74	%	Mar 2012				1,833
	Chicago, IL
3.	Avalon Columbia		N/A			170		29,241		N/A		22,275	Fixed			5.48	%	Apr 2012				3,386
	Baltimore, MD
4.	Avalon Redmond		N/A			400		56,224		N/A		36,500	Fixed			4.96	%	Jul 2012				5,548
	Seattle, WA
5.	Avalon Sunset		N/A			82		20,650		N/A		12,750	Fixed			5.41	%	Feb 2014				1,938
	Los Angeles, CA
6.	Avalon at Poplar Creek		N/A			196		27,624		N/A		16,500	Fixed			4.83	%	Oct 2012				2,508
	Chicago, IL
7.	Avalon at Civic Center (3)		N/A			192		42,513		N/A		23,806	Fixed			5.29	%	Aug 2013				3,619
	Norwalk, CA
8.	Avalon Paseo Place		N/A			134		23,924		N/A		11,800	Fixed			5.74	%	Nov 2013				1,794
	Fremont, CA
9.	Avalon at Yerba Buena		N/A			160		66,757		N/A		41,500	Fixed			5.88	%	Mar 2014				6,308
	San Francisco, CA
10.	Avalon at Aberdeen Station		N/A			290		58,219		N/A		34,456	Fixed			5.73	%	Sep 2013				5,237
	Aberdeen, NJ
11.	The Springs		N/A			320		47,646		N/A		26,000	Fixed			6.06	%	Oct 2014				3,952
	Corona, CA
12.	The Covington		N/A			256		33,059		N/A		17,243	Fixed			5.43	%	Jan 2014				2,621
	Lombard, IL
13.	Avalon Cedar Place		N/A			156		21,779		N/A		12,000	Fixed			5.68	%	Feb 2014				1,824
	Columbia, MD
14.	Avalon Centerpoint		N/A			392		78,844		N/A		45,000	Fixed			5.74	%	Dec 2013				6,840
	Baltimore, MD
15.	Middlesex Crossing		N/A			252		37,721		N/A		24,100	Fixed			5.49	%	Dec 2013				3,663
	Billerica, MA
16.	Avalon Crystal Hill		N/A			168		38,014		N/A		24,500	Fixed			5.43	%	Dec 2013				3,724
	Ponoma, NY
17.	Skyway Terrace		N/A			348		74,267		N/A		37,500	Fixed			6.11	%	Mar 2014				5,700
	San Jose, CA
18.	Avalon Rutherford Station		N/A			108		36,233		N/A		20,653	Fixed			6.13	%	Sept 2016				3,139
	East Rutherford, NJ
19.	South Hills Apartments		N/A			85		20,834		N/A		11,762	Fixed			5.92	%	Dec 2013				1,788
	West Covina, CA
20.	Colonial Towers/South Shore Manor		N/A			211		21,542		N/A		—		N/A		N/A			N/A			—
	Weymouth, MA
	Fund corporate debt		N/A			N/A		N/A		N/A		47,400	Variable			5.86	%		2008	(4)		7,205

			15.2	%		4,229	$	777,568	$	118,564	$	494,566									$	75,175	(5)

Other Operating Joint Ventures
1.	Avalon Chrystie Place I (6)		20.0	%		361		130,770		25,061		117,000	Variable			3.38	%	Nov 2036				23,400
	New York, NY

2.	Avalon at Mission Bay North II (6)		25.0	%		313		123,684		29,767		105,000	Fixed			6.02	%	Dec 2015				26,250
	San Francisco, CA

3.	Avalon Del Rey		30.0	%		309		70,002		19,280		40,845		Variable		6.47	%	Sept 2009				12,254
	Los Angeles, CA

Other Development Joint Ventures
1.	Aria at Hathorne (7) (8)		50.0	%		433	$	84,800	$	4,132	$	3,470	Variable			6.88	%	May 2010			$	1,735
	Danvers, MA
						1,416	$	409,256	$	78,240	$	266,315									$	63,639


						5,645	$	1,186,824	$	196,804	$	760,881									$	138,814


(1)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		These unconsolidated real estate investments are accounted for under the equity method of accounting. AVB Book Value Investment represents the Company’s recorded equity investment plus the Company’s pro rata share of outstanding debt.

(3)		This community’s debt is a combination of two separate fixed rate loans which both mature in August 2013. The first loan totals $18,154 at a 5.04% interest rate and was assumed by the Fund upon purchase of this community. The second loan was procured in connection with the acquisition in the amount of $5,652 at a 6.08% interest rate. The rate listed in the table above represents a weighted average interest rate.

(4)		As of December 31, 2007, these borrowings are drawn under an unsecured credit facility maturing in December 2008. There were no borrowings outstanding as of December 31, 2007 under the Fund’s credit facility secured by uncalled capital commitments, which matured in January 2008. The 5.86% interest rate represents a weighted average for both facilities during the fourth quarter of 2007.

(5)		The Company has not guaranteed the debt of the Fund and bears no responsibility for the repayment.

(6)		After the venture makes certain threshold distributions to the third-party partner, the Company generally receives 50% of all further distributions.

(7)		Total Capital Cost for this community represents the capitalized costs incurred and projected to be incurred as part of the development completion, and is not the gross real estate cost as recorded by the joint venture as of December 31, 2007.

(8)		After the venture makes certain threshold distributions to the Company, AVB receives 50% of all further distributions.

Attachment 14

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of December 31, 2007
(Dollars in thousands)

Weighted

Accumulated

Weighted Average

Number of

Average

Gross Sales

Depreciation

Economic

Initial Year

Weighted Average

Communities Sold

Holding Period (2)

Price

GAAP Gain

and Other

Gain (3)

Mkt. Cap Rate (2) (3)

Unleveraged IRR (2) (3)

1998:

9 Communities

170,312

25,270

23,438

1,832

8.1

16.2

1999:

16 Communities

317,712

47,093

27,150

19,943

8.3

12.1

2000:

8 Communities

160,085

40,779

6,262

34,517

7.9

15.3

2001:

7 Communities

241,130

62,852

21,623

41,229

8.0

14.3

2002:

1 Community

80,100

48,893

7,462

41,431

5.4

20.1

2003:

12 Communities, 1 Land Parcel (4)

460,600

184,438

52,613

131,825

6.3

15.3

2004:

5 Communities, 1 Land Parcel

250,977

122,425

19,320

103,105

4.8

16.8

2005:

7 Communities, 1 Office Building,
3 Land Parcels (5)

382,720

199,766

14,929

184,838

3.8

18.0

2006:

4 Communities, 3 Land Parcels (6)

281,485

117,539

21,699

95,840

4.6

15.2

2007:

5 Communities, 1 Land Parcel (7)

273,896

163,352

17,588

145,764

4.6

17.8

1998 - 2007 Total

6.6

2,619,017

1,012,407

212,084

800,324

6.0

15.8


(1)		Activity excludes dispositions to joint venture entities in which the Company retains an economic interest.

(2)		For purposes of this attachment, land sales and the disposition of an office building are not included in the calculation of Weighted Average Holding Period, Weighted Average Initial Year Market Cap Rate, or Weighted Average Unleveraged IRR.

(3)		See Attachment #16 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		2003 GAAP gain, for purposes of this attachment, includes $23,448 related to the sale of a community in which the Company held a 50% membership interest.

(5)		2005 GAAP gain includes the recovery of an impairment loss of $3,000 recorded in 2002 related to one of the land parcels sold in 2005. This loss was recorded to reflect the land at fair value based on its entitlement status at the time it was determined to be planned for disposition.

(6)		2006 GAAP gain, for purposes of this attachment, includes $6,609 related to the sale of a community in which the Company held a 25% equity interest.

(7)		2007 GAAP gain, for purposes of this attachment, includes $56,320 related to the sale of a partnership interest in which the Company held a 50% equity interest.

Attachment 15

2008 Financial Outlook
As of February 6, 2008

(Dollars in millions, except per share data)


	Annual 2008
Economic Assumptions

Expected job growth (1)		0.5	%

LIBOR	3.0% to 4.0		%

Earnings per Share	$	6.50 to $8.50

Less — Net gain on asset sales, per share	$	4.08 to $6.08

Plus — Real estate depreciation, per share	$	2.48 to $2.78

Funds from Operations (FFO) per share (2)	$	4.90 to $5.20

FFO per Share Growth at the Mid-Point of Outlook Ranges

Projected FFO per share growth		9.5	%

Projected FFO per share growth adjusted for non-routine items in 2007 and 2008		10.7	%

Established Communities (2)

Rental revenue growth	2.5% to 4.0		%
Operating expense increase	2.0% to 3.0		%
Net Operating Income growth (2)	3.0% to 4.5		%


		Total
Development Activity

Development starts (2)		$	900 to $1,100
Cash disbursed for development (2)
Cash disbursed for development communities started in 2008		$	200 to $400
Cash disbursed for development communities started prior to 2008		$	600 to $800
Development completions (2)		$	900 to $1,200
Number of apartment homes delivered in 2008			3,000 to 3,500

Investments in land for future development		$	125 to $175

Disposition Activity

Disposition volume		$	700 to $1,000

Financing Activity — Sources (Uses)

Debt offerings — secured and unsecured		$	700 to $1,000
Debt maturing and security redemptions	(	$	296	)
Weighted average interest rate on maturing debt and security redemptions			8.2	%

Dividend Growth			5.0	%

Capitalized Interest		$	75 to $95

Expensed Overhead (Corporate G&A, Property and Investment Management)		8.0% to 12.0		%


(1)		Moody’s Economy.com annual non-farm, non-construction job growth forecasted for 2008 for the Company’s markets is 0.5% vs. 0.7% for the U.S as of December 2007.

(2)		This term is a non-GAAP measure or other term that is described more fully on Attachment 16.

Attachment 16

AvalonBay Communities, Inc.
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms

This release, including its attachments, contains certain non-GAAP financial measures and other terms. The definition and calculation of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to below should not be considered an alternative to net income as an indication of our performance. In addition, these non-GAAP financial measures do not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered as an alternative measure of liquidity or as indicative of cash available to fund cash needs.

FFO is determined based on a definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is calculated by the Company as net income or loss computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, extraordinary gains or losses (as defined by GAAP), cumulative effect of a change in accounting principle and depreciation of real estate assets, including adjustments for unconsolidated partnerships and joint ventures. Management generally considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses related to dispositions of previously depreciated operating communities and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. A reconciliation of FFO to net income is as follows (dollars in thousands):


	Q4			Q4			Full Year			Full Year
	2007 (1)			2006 (2)			2007 (1) (3)			2006 (3)
Net income	$	131,819		$	46,313		$	358,160		$	266,546
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(8,700	)		(8,700	)
Depreciation — real estate assets, including discontinued operations and joint venture adjustments		48,054			42,270			184,731			165,982
Minority interest, including discontinued operations		55			95			280			391
Gain on sale of unconsolidated entities holding previously depreciated real estate assets		(59,927	)		(6,609	)		(59,927	)		(6,609	)
Gain on sale of previously depreciated real estate assets		(28,229	)		—			(106,487	)		(97,411	)

FFO attributable to common stockholders	$	89,597		$	79,894		$	368,057		$	320,199


Average shares outstanding — diluted		78,835,710			75,897,674			79,856,927			75,586,898
EPS — diluted	$	1.65		$	0.58		$	4.38		$	3.42

FFO per common share — diluted	$	1.14		$	1.05		$	4.61		$	4.24


(1)		FFO per common share — diluted includes $0.06 for the three months ended December 31, 2007 and $0.09 for the full year 2007 related to abandoned pursuit writeoffs.

(2)		Amounts for the three months ended December 31, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

(3)		FFO per common share — diluted includes $0.01 for the full year 2007 and $0.18 for the full year 2006 related to the sale of land parcels in each year.

Attachment 16 (continued)

Projected FFO, as provided within this release in the Company’s outlook, is calculated on a basis consistent with historical FFO, and is therefore considered to be an appropriate supplemental measure to projected net income from projected operating performance. A reconciliation of the range provided for Projected FFO per share (diluted) for the first quarter and full year of 2008 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) — Q1 08	$	0.58		$	0.62
Projected depreciation (real estate related)		0.65			0.65
Projected gain on sale of operating communities		—			—

Projected FFO per share (diluted) — Q1 08	$	1.23		$	1.27


Projected EPS (diluted) — Full Year 2008	$	6.50		$	8.50
Projected depreciation (real estate related)		2.48			2.78
Projected gain on sale of operating communities		(4.08	)		(6.08	)

Projected FFO per share (diluted) — Full Year 2008	$	4.90		$	5.20

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excludes corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management, net interest expense, general and administrative expense, joint venture income, minority interest expense, depreciation expense, gain on sale of real estate assets and income from discontinued operations. The Company considers NOI to be an appropriate supplemental measure to net income of operating performance of a community or communities because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of corporate-level property management overhead or general and administrative costs. This is more reflective of the operating performance of a community, and allows for an easier comparison of the operating performance of single assets or groups of assets. In addition, because prospective buyers of real estate have different overhead structures, with varying marginal impact to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or groups of assets.

Attachment 16 (continued)

A reconciliation of NOI (from continuing operations) to net income, as well as a breakdown of NOI by operating segment, is as follows (dollars in thousands):


	Q4			Q4			Full Year			Full Year
	2007			2006 ⁽¹⁾			2007			2006
Net income	$	131,819		$	46,313		$	358,160		$	266,546
Indirect operating expenses, net of corporate income		8,968			7,903			31,285			28,811
Investments and investment management		5,604			1,773			11,737			7,030
Interest expense, net		26,262			28,397			97,545			109,184
General and administrative expense		8,427			6,372			28,494			24,767
Joint venture income and minority interest		(59,160	)		(6,253	)		(57,584	)		(6,882	)
Depreciation expense		47,179			40,753			179,549			160,442
Gain on sale of real estate assets		(28,229	)		152			(107,032	)		(110,930	)
Income from discontinued operations		(301	)		(1,177	)		(4,005	)		(5,618	)

NOI from continuing operations	$	140,569		$	124,233		$	538,149		$	473,350


Established:
Northeast	$	46,128		$	45,341		$	184,643		$	177,978
Mid-Atlantic		18,610			18,170			71,882			67,532
Midwest		1,835			1,833			7,286			7,121
Pacific NW		5,980			5,245			23,111			19,744
No. California		30,182			27,135			116,516			103,448
So. California		9,958			9,700			40,219			37,968

Total Established		112,693			107,424			443,657			413,791

Other Stabilized		7,487			6,642			30,324			20,139
Development/Redevelopment		20,389			10,167			64,168			39,420

NOI from continuing operations	$	140,569		$	124,233		$	538,149		$	473,350


⁽¹⁾		Amounts for the three months ended December 31, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2006 through December 31, 2007). A reconciliation of NOI from communities sold or classified as discontinued operations to net income for these communities is as follows (dollars in thousands):


	Q4		Q4		Full Year		Full Year
	2007		2006		2007		2006
Income from discontinued operations	$	301	$	1,177	$	4,005	$	5,618
Interest expense, net		—		455		687		1,862
Depreciation expense		—		933		2,176		3,687

NOI from discontinued operations	$	301	$	2,565	$	6,868	$	11,167


NOI from assets sold	$	301	$	2,565	$	6,868	$	11,167
NOI from assets held for sale		—		—		—		—

NOI from discontinued operations	$	301	$	2,565	$	6,868	$	11,167

Attachment 16 (continued)

Projected NOI, as used within this release for certain Development and Redevelopment Communities and in calculating the Initial Year Market Cap Rate for dispositions, represents management’s estimate, as of the date of this release (or as of the date of the buyer’s valuation in the case of dispositions), of projected stabilized rental revenue minus projected stabilized operating expenses. For Development and Redevelopment Communities, Projected NOI is calculated based on the first year of Stabilized Operations, as defined below, following the completion of construction. In calculating the Initial Year Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s estimate of projected gross potential (based on leased rents for occupied homes and Market Rents, as defined below, for vacant homes) minus projected economic vacancy and adjusted for concessions. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation or amortization, or any allocation of corporate-level property management overhead or general and administrative costs. The weighted average Projected NOI as a percentage of Total Capital Cost is weighted based on the Company’s share of the Total Capital Cost of each community, based on its percentage ownership.

Management believes that Projected NOI of the development and redevelopment communities, on an aggregated weighted average basis, assists investors in understanding management’s estimate of the likely impact on operations of the Development and Redevelopment Communities when the assets are complete and achieve stabilized occupancy (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense). However, in this release the Company has not given a projection of NOI on a company-wide basis. Given the different dates and fiscal years for which NOI is projected for these communities, the projected allocation of corporate-level property management overhead, general and administrative costs and interest expense to communities under development or redevelopment is complex, impractical to develop, and may not be meaningful. Projected NOI of these communities is not a projection of the Company’s overall financial performance or cash flow. There can be no assurance that the communities under development or redevelopment will achieve the Projected NOI as described in this release.

Rental Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to rental revenue in conformity with GAAP to help investors evaluate the impact of both current and historical concessions on GAAP based rental revenue and to more readily enable comparisons to revenue as reported by other companies. In addition, rental revenue (with concessions on a cash basis) allows an investor to understand the historical trend in cash concessions.

A reconciliation of rental revenue from Established Communities in conformity with GAAP to rental revenue (with concessions on a cash basis) is as follows (dollars in thousands):


	Q4			Q4			Full Year			Full Year
	2007			2006			2007			2006
Rental revenue (GAAP basis)	$	165,570		$	158,664		$	652,129		$	617,872
Concessions amortized		1,572			1,702			6,119			12,336
Concessions granted		(1,183	)		(1,234	)		(6,234	)		(6,236	)


Rental revenue (with concessions on a cash basis)	$	165,959		$	159,132		$	652,014		$	623,972


% change — GAAP revenue		4.4	%					5.5	%
% change — cash revenue		4.3	%					4.5	%

Economic Gain is calculated by the Company as the gain on sale in accordance with GAAP, less accumulated depreciation through the date of sale and any other non-cash adjustments that may be required under GAAP accounting. Management generally considers Economic Gain to be an appropriate supplemental measure to gain on sale in accordance with GAAP because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold community. The Economic Gain for each of the communities presented is estimated based on their respective final settlement statements. A reconciliation of Economic Gain to gain on sale in accordance with GAAP for both the full year 2007 as well as prior years’ activities is presented on Attachment 14.

Interest Coverage is calculated by the Company as EBITDA from continuing operations, excluding land gains and gain on the sale of investments in real estate joint ventures, divided by the sum of interest expense, net, and preferred dividends. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our ability to service debt obligations to that of other companies. EBITDA is defined by the Company as net income before interest income and expense, income taxes, depreciation and amortization.

Attachment 16 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the fourth quarter of 2007 are as follows (dollars in thousands):


Net income	$	131,819
Interest expense, net		26,262
Interest expense (discontinued operations)		—
Depreciation expense		47,179
Depreciation expense (discontinued operations)		—


EBITDA	$	205,260


EBITDA from continuing operations	$	176,730
EBITDA from discontinued operations		28,530


EBITDA	$	205,260


EBITDA from continuing operations	$	176,730
Land gains		—
Gain on the sale of investments in real estate joint ventures		(59,927	)

EBITDA from continuing operations, excluding land gains and gain on sale of investments in real estate joint ventures	$	116,803


Interest expense, net		26,262
Dividends attributable to preferred stock		2,175

Interest charges		28,437


Interest coverage		4.1

Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment Community, or Development Right, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, all as determined in accordance with GAAP. For Redevelopment Communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. With respect to communities where development or redevelopment was completed in a prior or the current period, Total Capital Cost reflects the actual cost incurred, plus any contingency estimate made by management. Total Capital Cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount. For joint ventures not in construction as presented on Attachment 13, Total Capital Cost is equal to gross real estate cost.

Initial Year Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less estimates for non-routine allowance of approximately $200 — $300 per apartment home, divided by the gross sales price for the community. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation, amortization and extraordinary items. For this purpose, management’s projection of operating expenses for the community includes a management fee of 3.0% — 3.5%. The Initial Year Market Cap Rate, which may be determined in a different manner by others, is a measure frequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for a property. Buyers may assign different Initial Year Market Cap Rates to different communities when determining the appropriate value because they (i) may project different rates of change in operating expenses and capital expenditure estimates and (ii) may project different rates of change in future rental revenue due to different estimates for changes in rent and occupancy levels. The weighted average Initial Year Market Cap Rate is weighted based on the gross sales price of each community.

Unleveraged IRR on sold communities refers to the internal rate of return calculated by the Company considering the timing and amounts of (i) total revenue during the period owned by the Company and (ii) the gross sales price net of selling costs, offset by (iii) the undepreciated capital cost of the communities at the time of sale and (iv) total direct operating expenses during the period owned by the Company. Each of the items (i), (ii), (iii) and (iv) are calculated in accordance with GAAP.

Attachment 16 (continued)

The calculation of Unleveraged IRR does not include an adjustment for the Company’s general and administrative expense, interest expense, or corporate-level property management and other indirect operating expenses. Therefore, Unleveraged IRR is not a substitute for net income as a measure of our performance. Management believes that the Unleveraged IRR achieved during the period a community is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development or redevelopment, management and sale of a community, before the impact of indirect expenses and Company overhead. The Unleveraged IRR achieved on the communities as cited in this release should not be viewed as an indication of the gross value created with respect to other communities owned by the Company, and the Company does not represent that it will achieve similar Unleveraged IRRs upon the disposition of other communities. The weighted average Unleveraged IRR for sold communities is weighted based on all cash flows over the holding period for each respective community, including net sales proceeds.

Leverage is calculated by the Company as total debt as a percentage of Total Market Capitalization. Total Market Capitalization represents the aggregate of the market value of the Company’s common stock, the market value of the Company’s operating partnership units outstanding (based on the market value of the Company’s common stock), the liquidation preference of the Company’s preferred stock and the outstanding principal balance of the Company’s debt. Management believes that Leverage can be one useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common stock trades. Changes in Leverage also can influence changes in per share results. A calculation of Leverage as of December 31, 2007 is as follows (dollars in thousands):


Total debt	$	3,210,703

Common stock		7,278,774
Preferred stock		100,000
Operating partnership units		6,027
Total debt		3,210,703

Total Market Capitalization		10,595,504


Debt as % of capitalization		30.3%

Because Leverage changes with fluctuations in the Company’s stock price, which occur regularly, the Company’s Leverage may change even when the Company’s earnings, interest and debt levels remain stable. Investors should also note that the net realizable value of the Company’s assets in liquidation is not easily determinable and may differ substantially from the Company’s Total Market Capitalization.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by either outstanding secured debt or land leases (excluding land leases with purchase options that were put in place for governmental incentives or tax abatements) as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s Interest Coverage, EBITDA and cash flow from operations, the Company believes that investors and creditors view Unencumbered NOI as a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the full year 2007 is as follows (dollars in thousands):


NOI for Established Communities	$	443,657
NOI for Other Stabilized Communities		30,324
NOI for Development/Redevelopment Communities		64,168
NOI for discontinued operations		6,868

Total NOI generated by real estate assets		545,017
NOI on encumbered assets		91,054

NOI on unencumbered assets		453,963


Unencumbered NOI		83.3%

Attachment 16 (continued)

Established Communities are identified by the Company as communities where a comparison of operating results from the prior year to the current year is meaningful, as these communities were owned and had Stabilized Operations, as defined below, as of the beginning of the prior year. Therefore, for 2007, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2006 and are not conducting or planning to conduct substantial redevelopment activities within the current year. Established Communities do not include communities that are currently held for sale or planned for disposition during the current year.

Development Communities are communities that are under construction and for which a final certificate of occupancy has not been received. These communities may be partially complete and operating.

Redevelopment Communities are communities where substantial redevelopment is in progress or is planned to begin during the current year. For wholly-owned communities, redevelopment is considered substantial when capital invested during the reconstruction effort is expected to exceed the lesser of $5,000,000 or 10% of the community’s acquisition cost. The definition of substantial redevelopment may differ for communities that are not wholly-owned.

Average Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted average number of occupied apartment homes.

Economic Occupancy is defined as total possible revenue less vacancy loss as a percentage of total possible revenue. Total possible revenue is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue.

Market Rents as reported by the Company are based on the current market rates set by the managers of the Company’s communities based on their experience in renting their communities’ apartments and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Non-Revenue Generating Capex represents capital expenditures that will not directly result in revenue earnings or expense savings.

Stabilized/Restabilized Operations is defined as the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Average Rent per Home, as calculated for certain Development and Redevelopment Communities in lease-up, reflects (i) actual average leased rents for those apartments leased through the end of the quarter net of estimated stabilized concessions, (ii) estimated market rents net of comparable concessions for all unleased apartments and (iii) includes actual and estimated other rental revenue. For Development and Redevelopment Communities not yet in lease-up, Average Rent per Home reflects management’s projected rents.

Development Rights are development opportunities in the early phase of the development process for which the Company either has an option to acquire land or enter into a leasehold interest, for which the Company is the buyer under a long-term conditional contract to purchase land or where the Company owns land to develop a new community. The Company capitalizes related predevelopment costs incurred in pursuit of new developments for which future development is probable.